10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number: 1-5690

GENUINE PARTS COMPANY

(Exact name of registrant as specified in its charter)

GEORGIA	58-0254510
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2999 CIRCLE 75 PARKWAY, ATLANTA, GA	30339
(Address of principal executive offices)	(Zip Code)

(770) 953-1700

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at March 31, 2014
Common Stock, $1.00 par value per share	153,604,136 Shares

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

	March 31, 2014			December 31, 2013
	(unaudited)
	(in thousands, except share and per share data)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	103,472		$	196,893
Trade accounts receivable, less allowance for doubtful accounts (2014 – $15,474; 2013 – $14,423)		1,828,309			1,664,819
Merchandise inventories, net – at lower of cost or market		2,974,306			2,946,021
Prepaid expenses and other current assets		440,344			413,758
TOTAL CURRENT ASSETS		5,346,431			5,221,491
Goodwill		848,682			789,971
Other intangible assets, less accumulated amortization		561,130			499,385
Deferred tax assets		92,539			97,555
Other assets		468,903			401,834
Property, plant and equipment, less allowance for depreciation (2014 – $833,310; 2013 – $807,436)		664,689			670,061
TOTAL ASSETS	$	7,982,374		$	7,680,297
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Trade accounts payable	$	2,335,327		$	2,269,671
Current portion of debt		399,756			264,658
Dividends payable		88,421			82,746
Income taxes payable		76,682			9,237
Other current liabilities		522,552			556,732
TOTAL CURRENT LIABILITIES		3,422,738			3,183,044
Long-term debt		500,000			500,000
Pension and other post–retirement benefit liabilities		137,638			140,171
Deferred tax liabilities		87,726			83,316
Other long-term liabilities		423,063			414,998
EQUITY:
Preferred stock, par value – $1 per share
Authorized – 10,000,000 shares – None issued		-0-			-0-
Common stock, par value – $1 per share
Authorized – 450,000,000 shares
Issued – 2014 – 153,604,136; 2013 – 153,773,098		153,604			153,773
Additional paid-in capital		17,278			14,935
Retained earnings		3,624,642			3,578,021
Accumulated other comprehensive loss		(393,762	)		(397,655	)
TOTAL PARENT EQUITY		3,401,762			3,349,074
Noncontrolling interests in subsidiaries		9,447			9,694
TOTAL EQUITY		3,411,209			3,358,768
TOTAL LIABILITIES AND EQUITY	$	7,982,374		$	7,680,297

See notes to condensed consolidated financial statements.

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GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

	Three Months Ended March 31,
	2014		2013
	(unaudited)
	(in thousands, except per share data)
Net sales	$	3,624,897	$	3,198,802
Cost of goods sold		2,540,267		2,277,054
Gross profit		1,084,630		921,748
Operating expenses:
Selling, administrative, and other expenses		803,802		673,612
Depreciation and amortization		36,856		25,999
		840,658		699,611
Income before income taxes		243,972		222,137
Income taxes		86,488		77,748
Net income	$	157,484	$	144,389
Basic net income per common share	$	1.02	$	.93
Diluted net income per common share	$	1.02	$	.93
Dividends declared per common share	$	.575	$	.5375
Weighted average common shares outstanding		153,729		154,891
Dilutive effect of stock options and non-vested restricted stock awards		1,067		1,040
Weighted average common shares outstanding – assuming dilution		154,796		155,931
Comprehensive income	$	161,377	$	147,947

See notes to condensed consolidated financial statements.

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GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

	Three Months Ended March 31,
	2014			2013
	(unaudited)
	(in thousands)
OPERATING ACTIVITIES:
Net income	$	157,484		$	144,389
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		36,856			25,999
Share-based compensation		3,073			2,477
Excess tax benefits from share-based compensation		(4,106	)		(3,840	)
Other		13			(67	)
Changes in operating assets and liabilities		(133,541	)		(52,580	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		59,779			116,378
INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(18,387	)		(12,924	)
Acquisitions and other investing activities		(156,853	)		(6,745	)
NET CASH USED IN INVESTING ACTIVITIES		(175,240	)		(19,669	)
FINANCING ACTIVITIES:
Proceeds from debt		740,012			439,742
Payments on debt		(610,604	)		(25,000	)
Share-based awards exercised, net of taxes paid		(4,736	)		(4,425	)
Excess tax benefits from share-based compensation		4,106			3,840
Dividends paid		(82,750	)		(76,641	)
Purchase of stock		(22,709	)		(110	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		23,319			337,406
EFFECT OF EXCHANGE RATE CHANGES ON CASH		(1,279	)		4,684
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS		(93,421	)		438,799
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		196,893			403,095
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	103,472		$	841,894

See notes to condensed consolidated financial statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note A – Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. Except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company”) for the year ended December 31, 2013. Accordingly, the unaudited interim condensed consolidated financial statements and related disclosures herein should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K.

The preparation of interim financial statements requires management to make estimates and assumptions for the amounts reported in the condensed consolidated financial statements. Specifically, the Company makes estimates and assumptions in its interim condensed consolidated financial statements for inventory adjustments, the accrual of bad debts, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation, which is performed each year-end. Reserves for bad debts are estimated and accrued based on a percentage of sales. Customer sales returns are estimated and accrued on an interim basis based upon historical sales and returns. Volume incentives are estimated based upon cumulative and projected purchasing levels. The estimates and assumptions for interim reporting may change upon final determination at year-end, and such changes may be significant.

In the opinion of management, all adjustments necessary for a fair presentation of the Company’s financial results for the interim periods have been made. These adjustments are of a normal recurring nature. The results of operations for the three month period ended March 31, 2014 are not necessarily indicative of results for the entire year. The Company has evaluated subsequent events through the date the financial statements covered by this quarterly report were issued.

Note B – Segment Information

	Three Months Ended March 31,
	2014			2013
	(in thousands)
Net sales:
Automotive	$	1,898,515		$	1,544,537
Industrial		1,143,274			1,102,080
Office products		418,098			420,128
Electrical/electronic materials		180,331			139,185
Other		(15,321	)		(7,128	)
Total net sales	$	3,624,897		$	3,198,802
Operating profit:
Automotive	$	150,110		$	121,043
Industrial		83,050			78,895
Office products		33,946			33,192
Electrical/electronic materials		15,529			10,451
Total operating profit		282,635			243,581
Interest expense, net		(6,206	)		(3,353	)
Other intangible assets amortization		(8,876	)		(3,775	)
Other, net		(23,581	)		(14,316	)
Income before income taxes	$	243,972		$	222,137

Net sales by segment exclude the effect of certain discounts, incentives and freight billed to customers. The line item “Other” represents the net effect of the discounts, incentives and freight billed to customers, which is reported as a component of net sales in the Company’s condensed consolidated statements of income and comprehensive income.

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Note C – Other Comprehensive Income

The difference between comprehensive income and net income was due to foreign currency translation adjustments and pension and other post-retirement benefit adjustments, as summarized below.

	Three Months Ended March 31,
	2014			2013
	(in thousands)
Net income	$	157,484		$	144,389
Other comprehensive income:
Foreign currency translation		102			(8,220	)
Pension and other post-retirement benefit adjustments:
Recognition of prior service credit, net of tax		(487	)		(1,323	)
Recognition of actuarial loss, net of tax		4,278			13,101
Total other comprehensive income		3,893			3,558
Comprehensive income	$	161,377		$	147,947

The following tables present the changes in accumulated other comprehensive (loss) income by component for the three months ended March 31:

	2014
	Changes in Accumulated Other Comprehensive (Loss) Income by Component
	Pension and Other Post- Retirement Benefits			Foreign Currency Translation			Total
	(in thousands)
Beginning balance, January 1	$	(360,036	)	$	(37,619	)	$	(397,655	)
Other comprehensive income before reclassifications, net of tax		—			102			102
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax		3,791			—			3,791
Net current period other comprehensive income		3,791			102			3,893
Ending balance, March 31	$	(356,245	)	$	(37,517	)	$	(393,762	)

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	2013
	Changes in Accumulated Other Comprehensive (Loss) Income by Component
	Pension and Other Post- Retirement Benefits			Foreign Currency Items			Total
	(in thousands)
Beginning balance, January 1	$	(632,576	)	$	131,084		$	(501,492	)
Other comprehensive loss before reclassifications, net of tax		—			(8,220	)		(8,220	)
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax		11,778			—			11,778
Net current period other comprehensive income (loss)		11,778			(8,220	)		3,558
Ending balance, March 31	$	(620,798	)	$	122,864		$	(497,934	)

The accumulated other comprehensive (loss) income components related to the pension benefits are included in the computation of net periodic benefit (income) cost in the employee benefit plans footnote.

Note D – Share-Based Compensation

As more fully discussed in Note 5 of the Company’s notes to the consolidated financial statements in its 2013 Annual Report on Form 10-K, the Company maintains various long-term incentive plans, which provide for the granting of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance awards, dividend equivalents and other share-based awards. SARs represent a right to receive upon exercise an amount, payable in shares of common stock, equal to the excess, if any, of the fair market value of the Company’s common stock on the date of exercise over the base value of the grant. The terms of such SARs require net settlement in shares of common stock and do not provide for cash settlement. RSUs represent a contingent right to receive one share of the Company’s common stock at a future date. The majority of awards previously granted vest on a pro-rata basis for periods ranging from one to five years and are expensed accordingly on a straight-line basis. The Company issues new shares upon exercise or conversion of awards under these plans. Most awards may be exercised or converted to shares not earlier than twelve months nor later than ten years from the date of grant. At March 31, 2014, total compensation cost related to nonvested awards not yet recognized was approximately $19.0 million, as compared to $26.0 million at December 31, 2013. The weighted-average period over which this compensation cost is expected to be recognized is approximately three years. The aggregate intrinsic value for SARs and RSUs outstanding at March 31, 2014 was approximately $151.4 million. At March 31, 2014, the aggregate intrinsic value for SARs and RSUs vested totaled approximately $89.3 million, and the weighted-average contractual life for outstanding and exercisable SARs and RSUs was approximately six and five years, respectively. For the three months ended March 31, 2014, $3.1 million of share-based compensation cost was recorded, as compared to $2.5 million for the same period in the prior year.

On April 1, 2014, the Company granted approximately 680,000 SARs and 165,000 RSUs.

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Note E – Employee Benefit Plans

Net periodic benefit (income) cost for the pension plans included the following components for the three months ended March 31:

	2014			2013
	(in thousands)
Service cost	$	1,909		$	4,976
Interest cost		25,502			22,407
Expected return on plan assets		(36,197	)		(33,518	)
Amortization of prior service credit		(464	)		(1,894	)
Amortization of actuarial loss		6,595			21,112
Net periodic benefit (income) cost	$	(2,655	)	$	13,083

Pension benefits also include amounts related to a supplemental retirement plan. During the three months ended March 31, 2014, the Company made a $38.7 million contribution to the pension plan.

Note F – Guarantees

The Company guarantees the borrowings of certain independently controlled automotive parts stores (“independents”) and certain other affiliates in which the Company has a noncontrolling equity ownership interest (“affiliates”). Presently, the independents are generally consolidated by unaffiliated enterprises that have a controlling financial interest through ownership of a majority voting interest in the independent. The Company has no voting interest or equity conversion rights in any of the independents. The Company does not control the independents or the affiliates, but receives a fee for the guarantee. The Company has concluded that the independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the equity holders of the independents have the power to direct the activities that most significantly impact the entity’s economic performance including, but not limited to, decisions about hiring and terminating personnel, local marketing and promotional initiatives, pricing and selling activities, credit decisions, monitoring and maintaining appropriate inventories, and store hours. Separately, the Company concluded the affiliates are not variable interest entities. The Company’s maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to the Company’s guarantee. While such borrowings of the independents and affiliates are outstanding, the Company is required to maintain compliance with certain covenants, including a maximum debt to capitalization ratio and certain limitations on additional borrowings. At March 31, 2014, the Company was in compliance with all such covenants.

At March 31, 2014, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $262.6 million. These loans generally mature over periods from one to six years. In the event that the Company is required to make payments in connection with guaranteed obligations of the independents or the affiliates, the Company would obtain and liquidate certain collateral (e.g., accounts receivable and inventory) to recover all or a portion of the amounts paid under the guarantee. When it is deemed probable that the Company will incur a loss in connection with a guarantee, a liability is recorded equal to this estimated loss. To date, the Company has had no significant losses in connection with guarantees of independents’ and affiliates’ borrowings.

The Company has accrued for guarantees related to the independents’ and affiliates’ borrowings as of March 31, 2014. These liabilities are not material to the financial position of the Company and are included in “Other long-term liabilities” in the accompanying condensed consolidated balance sheets.

Note G – Fair Value of Financial Instruments

The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, trade accounts receivable, trade accounts payable, and borrowings under the line of credit approximate their respective fair values based on the short-term nature of these instruments. At March 31, 2014, the carrying value and the fair value of fixed rate debt were approximately $500.0 million and $498.0 million, respectively. The fair value of fixed rate debt is designated as Level 2 in the fair value hierarchy (i.e., significant observable inputs) and is based primarily on the discounted value of future cash flows using current market interest rates offered for debt of similar credit risk and maturity. The carrying value of the fixed rate debt is included in “Long-term debt” in the accompanying condensed consolidated balance sheet.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and accompanying notes contained herein and with the audited consolidated financial statements, accompanying notes, related information and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2013.

Forward-Looking Statements

Some statements in this report, as well as in other materials we file with the Securities and Exchange Commission (SEC) or otherwise release to the public and in materials that we make available on our website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. Forward-looking statements may relate, for example, to future operations, prospects, strategies, financial condition, economic performance (including growth and earnings), industry conditions and demand for our products and services. The Company cautions that its forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, slowing demand for the Company’s products, changes in general economic conditions, including, unemployment, inflation or deflation, high energy costs, uncertain credit markets and other macro-economic conditions, the ability to maintain favorable vendor arrangements and relationships, disruptions in our vendors’ operations, competitive product, service and pricing pressures, the Company’s ability to successfully implement its business initiatives in each of its four business segments, the Company’s ability to successfully integrate its acquired businesses, the uncertainties and costs of litigation, as well as other risks and uncertainties discussed in the Company’s Annual Report on Form 10-K for 2013 and from time to time in the Company’s subsequent filings with the SEC.

Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent reports on Forms 10-K, 10-Q, 8-K and other reports to the SEC.

Overview

Genuine Parts Company is a service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. The Company has a long tradition of growth dating back to 1928, the year we were founded in Atlanta, Georgia. During the three months ended March 31, 2014, business was conducted throughout the United States, Canada, Australia, New Zealand, Mexico and Puerto Rico from approximately 2,600 locations.

For the three months ended March 31, 2014, we recorded consolidated net income of $157.5 million compared to consolidated net income of $144.4 million, an increase of 9% from the same three month period in the prior year. The Company continues to focus on a variety of initiatives to facilitate continued growth including strategic acquisitions, the introduction of new and expanded product lines, geographic expansion, sales to new markets, enhanced customer marketing programs and a variety of gross margin and cost savings initiatives.

Sales

Sales for the first quarter of 2014 were $3.62 billion, an increase of 13% compared to $3.20 billion for the same period in 2013.

Sales for the Automotive Parts Group increased 23% for the three months ended March 31, 2014, as compared to the same period in the previous year. The increase in this group’s revenues was due to the approximately 17% accretive impact of the Company’s acquisitions, with the remaining 7% representing core North American sales growth. Unfavorable foreign exchange rates associated with our Australia and Canadian businesses negatively impacted sales in the three month period ended March 31, 2014 by 1.6%. In the quarters ahead, we anticipate increased sales growth in the Automotive Parts Group due primarily to organic growth. The Industrial Products Group’s sales increased 4% for the three month period ended March 31, 2014, as compared to the same period in 2013. The increase in this group’s revenues was due to the approximately 3% accretive impact of the Company’s acquisitions, with the remaining 2% representing organic growth before a 1% unfavorable foreign currency translation effect for the three month period ended March 31, 2014.

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The Industrial Products Group experienced slightly improved demand patterns in the three months ended March 31, 2014 as compared to the same period in 2013. We expect improved industry conditions, as well as internal sales initiatives and acquisitions to support growing revenues for this group in the quarters ahead. Sales for the Office Products Group decreased by approximately 1% for the three month period ended March 31, 2014, as compared to the same period in 2013 primarily due to lower sales volumes and partially offset by a small acquisition. Despite the industry-wide slowdown in office product consumption, which continues to pressure this segment, reflects the on-going elevated levels of white-collar unemployment. We expect internal sales initiatives and acquisitions to support moderate revenue growth for this group in the quarters ahead. Sales for the Electrical/Electronic Materials Group increased 30% for the three month period ended March 31, 2014, as compared to the same period of the previous year. The increase in this group’s revenues was due to the approximately 29% accretive impact of the Company’s acquisitions, with the remaining 1% representing organic growth for the three month period ended March 31, 2014. Our focused growth initiatives should enable this group to report gradual organic revenue improvement and moderately strong revenue increases from their recently completed acquisitions in the quarters ahead.

Industry pricing was flat in the Automotive segment and increased by less than 1% in each of the Company’s non-automotive businesses during the three month period ended March 31, 2014.

Cost of Goods Sold/Expenses

Cost of goods sold for the first quarter of 2014 was $2.54 billion, a 12% increase from $2.28 billion for the first quarter of 2013. The increase in cost of goods sold for the first quarter was primarily related to the 13% sales increase for the same period. As a percentage of net sales, cost of goods sold decreased to 70.1% of net sales for the three month period ended March 31, 2014, as compared to 71.2% for the same period of the prior year. The decrease in cost of goods sold as a percentage of net sales primarily relate to a lower cost of goods sold and a higher level of operating costs at the GPC Asia Pacific business due to its 100% owned store-based model, as compared to the Company’s other automotive businesses. The Company’s cost of goods sold includes the total cost of merchandise sold, including freight expenses associated with moving merchandise from our vendors to our distribution centers and retail stores, vendor income and inventory adjustments. Gross profit as a percentage of net sales may fluctuate based on (i) changes in merchandise costs and related vendor income or vendor pricing, (ii) variations in product and customer mix, (iii) price changes in response to competitive pressures and (iv) physical inventory and LIFO adjustments.

Total operating expenses of $840.7 million increased to 23.2% of net sales for the first quarter of 2014 compared to $699.6 million, or 21.9% of net sales for the same period of the prior year. The increase in operating expenses as a percentage of net sales for the first quarter ended March 31, 2014 reflects the impact of higher operating costs at GPC Asia Pacific due to its higher level of operating costs associated with a 100% owned store-based model, and cost saving initiatives including the Company’s pension plan freeze effective January 1, 2014. We continue to focus on effectively managing the costs in our business with ongoing investments in technology and supply chain initiatives primarily associated with freight and logistics.

The Company’s operating expenses are substantially comprised of compensation and benefit costs for personnel. Other major expense categories include facility occupancy costs for headquarters, distribution center and store operations, employee benefits and insurance costs, accounting, legal and professional services, transportation and delivery costs, travel and advertising. Management’s ongoing cost control measures in these areas have served to improve the Company’s overall cost structure.

Operating Profit

Operating profit of $282.6 million was 7.8% of net sales for the three months ended March 31, 2014, compared to $243.6 million, or 7.6% of net sales for the same three month period of the previous year. The increase in operating profit as a percentage of net sales for the three month period ended March 31, 2014 is primarily due to the Company’s increased revenues and cost savings including savings from the Company’s pension plan freeze effective January 1, 2014.

The Automotive Parts Group’s operating profit increased 24%, which correlates with the sales increase of 23% in the first quarter of 2014 and its operating profit margin increased to 7.9%, as compared to 7.8% for the same three month period of the prior year. The Industrial Products Group had a 5% increase in operating profit in the first quarter of 2014 compared to the first quarter of 2013, and the operating profit margin for this group in the first quarter of 2014 increased to 7.3% compared to 7.2% in the same period of the previous year. The Office Products Group’s operating profit increased 2% in the first quarter of 2014 compared to the same three month period in 2013, and the operating profit margin for this group increased to 8.1% as compared to 7.9% for the same period of 2013. The Electrical/Electronic Materials Group operating profit increased by 49% in the first quarter, and its operating profit margin increased to 8.6% compared to 7.5% in the first quarter of the previous year.

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Income Taxes

The effective income tax rate increased to 35.5% for the three month period ended March 31, 2014, compared to 35.0% for the same period in 2013. The rate increase in the three month period ended March 31, 2014 primarily reflects a more favorable non-taxable retirement plan valuation recorded in the three month period ended March 31, 2013.

Net Income

Net income for the three months ended March 31, 2014 was $157.5 million, an increase of 9%, as compared to $144.4 million for the same three month period of 2013. On a per share diluted basis, net income was $1.02, an increase of 10% as compared to $0.93 for the first quarter of 2013.

Financial Condition

The Company’s cash balance at March 31, 2014 decreased $93.4 million or 47% from December 31, 2013, due to $156.9 million used for acquisitions and other investing activities, $18.4 million invested in the Company via capital expenditures and $22.7 million for share repurchases.

Accounts receivable increased $163.5 million or 10% from December 31, 2013, which is due to the Company’s overall sales increase and acquisitions. Inventory increased $28.3 million or 1% compared to the inventory balance at December 31, 2013, as inventory from acquisitions was marginally offset by planned inventory reductions. Accounts payable increased $65.7 million or 3% from December 31, 2013, primarily due to acquisitions and more favorable payment terms negotiated with our vendors in the three month period ended March 31, 2014. The Company’s debt is discussed below.

Liquidity and Capital Resources

Total debt increased $135.1 million, or 18%, from December 31, 2013, due to incremental borrowings under the $850 million unsecured revolving line of credit primarily related to the Company’s acquisitions. The line of credit matures in September 2017 and bears interest at LIBOR plus various margins, which is based on the Company’s leverage ratio. At March 31, 2014, $399.8 million was outstanding under the line of credit.

The remaining debt outstanding is at fixed rates of interest and remains unchanged at $500.0 million as of March 31, 2014, compared to December 31, 2013. The fixed rate debt is comprised of two notes of $250.0 million each, due in November 2016 and December 2023, carrying an interest rate of 3.35% and 2.99%, respectively. At March 31, 2014, the Company was in compliance with all covenants connected with these borrowings.

The ratio of current assets to current liabilities was 1.6 to 1 at March 31, 2014, unchanged from December 31, 2013.

The Company currently believes existing lines of credit and cash generated from operations will be sufficient to fund anticipated operations, including share repurchases, if any, for the foreseeable future.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Although the Company does not face material risks related to interest rates and commodity prices, the Company is exposed to changes in foreign currency rates with respect to foreign currency denominated operating revenues and expenses. The Company has translation gains or losses that result from translation of the results of operations of an operating unit’s foreign functional currency into U.S. dollars for consolidated financial statement purposes. The Company’s principal foreign currency exchange exposures are the Australian dollar and Canadian dollar, which are the functional currency of our Australian and Canadian operations. As previously noted under “Sales,” foreign currency exchange exposure, particularly in regard to the Australian dollar and Canadian dollar, negatively impacted our results for the three month period ended March 31, 2014. There have been no other material changes in market risk from the information provided in the Company’s Annual Report on Form10-K for the year ended December 31, 2013.

11

Item 4. Controls and Procedures

As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the Company’s disclosure controls and procedures. Based on that evaluation, the Company’s CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or furnishes under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

There have been no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 of the SEC that occurred during the Company’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

12

PART II – OTHER INFORMATION

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, which could materially affect our business, financial condition or future results. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

13

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

The following table provides information about the Company’s purchases of shares of the Company’s common stock during the quarter:

ISSUER PURCHASES OF EQUITY SECURITIES

Period	Total Number of Shares Purchased (1)		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
January 1, 2014 through January 31, 2014		170,345	$	82.61		84,952		10,583,427
February 1, 2014 through February 28, 2014		117,734	$	86.79		—		10,583,427
March 1, 2014 through March 31, 2014		209,644	$	85.28		184,264		10,399,163
Totals		497,723	$	84.72		269,216		10,399,163

(1) Includes shares surrendered by employees to the Company to satisfy tax withholding obligations in connection with the vesting of shares of restricted stock, the exercise of stock options and/or tax withholding obligations.

(2) On November 17, 2008, the Board of Directors announced that it had authorized the repurchase of 15 million shares. The authorization for this repurchase plan continues until all such shares have been repurchased or the repurchase plan is terminated by action of the Board of Directors. Approximately 10.4 million shares authorized in the 2008 plan remain available to be repurchased by the Company. There were no other publicly announced plans as of March 31, 2014.

Item 6. Exhibits

(a) The following exhibits are filed or furnished as part of this report:

Exhibit 3.1	Amended and Restated Articles of Incorporation of the Company, dated April 23, 2007 (incorporated herein by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K dated April 23, 2007)
Exhibit 3.2	By-Laws of the Company, as amended and restated November 18, 2013 (incorporated herein by reference from Exhibit 3.2 to the Company’s Current Report on Form 8-K dated November 18, 2013)
Exhibit 10.1	Description of Director Compensation – filed herewith
Exhibit 10.2	Genuine Parts Company Performance Restricted Stock Unit Award Agreement – filed herewith
Exhibit 31.1	Certification pursuant to SEC Rule 13a-14(a) signed by the Chief Executive Officer – filed herewith
Exhibit 31.2	Certification pursuant to SEC Rule 13a-14(a) signed by the Chief Financial Officer – filed herewith

14

Exhibit 32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by the Chief Executive Officer – furnished herewith
Exhibit 32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by the Chief Financial Officer – furnished herewith
Exhibit 101	Interactive data files pursuant to Rule 405 of Regulation S-T:
	(i) the Condensed Consolidated Balance Sheets at March 31, 2014 and December 31, 2013; (ii) the Condensed Consolidated Statements of Income and Comprehensive Income for the three month period ended March 31, 2014 and 2013; (iii) the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013; and (iv) the Notes to the Condensed Consolidated Financial Statements – submitted herewith pursuant to Rule 406T

15

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Genuine Parts Company (Registrant)
Date: May 7, 2014	/s/ Carol B. Yancey
	Carol B. Yancey
	Executive Vice President and Chief Financial Officer
	(Duly Authorized Officer and Principal Financial and Accounting Officer)

16

EX-10.1

EXHIBIT 10.1

Description of Director Compensation

Effective April 1, 2014, non-employee directors of the Company receive $15,000 per fiscal quarter in compensation for service as director, plus $1,500 per board and committee meeting attended, except the Chairs of the Audit Committee and the Compensation, Nominating and Governance Committee, who each receive $16,250 per fiscal quarter and $1,500 per board and committee meeting attended, and except for the Independent Lead Director, who receives $17,500 per fiscal quarter and $1,500 per board and committee meeting attended. Non-employee directors may elect to defer the receipt of meeting and/or director fees in accordance with the terms of the Company’s Directors’ Deferred Compensation Plan. In addition, non-employee directors may from time to time be granted restricted stock units pursuant to the provisions of the Genuine Parts Company 2006 Long Term Incentive Plan. The compensation of directors may be changed from time to time by the Board of Directors without stockholder approval.

EX-10.2

Exhibit 10.2

PERFORMANCE RESTRICTED STOCK UNIT AWARD AGREEMENT

Non-transferable

GRANT TO

GRANTEE

(“Grantee”)

by Genuine Parts Company (the “Company”) of

[            ] Performance Restricted Stock Units

convertible into shares of its Stock, par value $1.00 per share (the “Units”).

pursuant to and subject to the provisions of the Genuine Parts Company 2006 Long-Term Incentive Plan (the “Plan”) and to the terms and conditions set forth on the following page (the “Terms and Conditions”).

Unless accelerated in accordance with the Plan or in the discretion of the Committee, the Units will be earned on December 31, 20xx in accordance with the following schedule:

Actual Pre-Tax Profit as a Percent of Target*	Actual Pre-Tax Profit*	Actual Units Earned**	Percent of Units Earned**
less than 90%	$XX,XXX,XXX	0	0%
90%	$XX,XXX,XXX	X,XXX	50%
100%	$XX,XXX,XXX	X,XXX	100%
110%	$XX,XXX,XXX	X,XXX	150%

* Pre-tax profit target for the year ending December 31, 20xx is $XX,XXX,XXX

**Straight line interpolation is used to determine percent of Units earned when actual level is between two points.

IN WITNESS WHEREOF, Genuine Parts Company has caused this Agreement to be executed as of the Grant Date, as indicated below.

GENUINE PARTS COMPANY
By:
	Carol B. Yancey Exec. Vice President, CFO and Corporate Secretary
Grant Date:
Accepted by Grantee:

TERMS AND CONDITIONS

1. Grant of Units. Genuine Parts Company (the “Company”) hereby grants to the Grantee named on page 1 hereof (“Grantee”), subject to the restrictions and the other terms and conditions set forth in the Genuine Parts Company 2006 Long-Term Incentive Plan (the “Plan”) and in this award agreement (this “Agreement”), the right to earn on December 31, 20xx, the number of restricted stock units indicated on page 1 hereof which, if and to the extent earned (the “Units”), will represent the right to receive an equal number of shares of the Company’s $1.00 par value Stock (“Stock”) on the terms set forth in this Agreement. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Plan.

2. Vesting of Units. The Units will be credited to a bookkeeping account on behalf of Grantee. The Units will vest and become non-forfeitable on the earliest to occur of the following (the “Vesting Date”):

(a) December 1, 20xx,

(b) The date of Grantee’s Retirement* after December 31, 20xx, or

(c) The date of Grantee’s termination of employment due to death or Disability, or

(d) The effective date of a Change in Control.

If Grantee’s employment terminates prior to the Vesting Date for any reason other than as described in (b) or (c) above, Grantee shall forfeit all right, title and interest in and to the then unvested Units as of the date of such termination and the unvested Units will be reconveyed to the Company without further consideration or any act or action by Grantee.

3. Conversion to Stock. Unless the Units are forfeited prior to the Vesting Date as provided in Section 2 above, the Units will be converted to actual shares of Stock on the earlier of the effective date of a Change in Control or December 1, 20xx (the “Conversion Date”). The conversion of Units into shares of Stock will be registered at the Company’s transfer agent (Computershare) on the books of the Company in Grantee’s name as of the Conversion Date and the Grantee will be notified as soon as practical thereafter.

4. Limitation of Rights. The Units do not confer to Grantee or Grantee’s beneficiary any rights of a shareholder of the Company unless and until Shares are in fact issued to such person in connection with the Units. Nothing in this Agreement shall interfere with or limit in any way the right of the Company or any affiliate to terminate Grantee’s service at any time, nor confer upon Grantee any right to continue in the service of the Company or any affiliate.

5. Dividend Equivalents. If any dividends or other distributions are paid with respect to the Company’s Stock while the earned Units are outstanding, the dollar amount or fair market value of such dividends or distributions with respect to the number of shares of Stock then underlying the Units shall be converted into additional Units in Grantee’s name, based on the Fair Market Value of the Stock as of the date such dividends or distributions were payable, and such additional Units shall be subject to the same forfeiture and transfer restrictions and deferral terms as apply to the Units with respect to which they relate. Upon conversion of the Units into shares of Stock at the Conversion Date or any applicable deferral termination date, Grantee will obtain full voting and other rights as a shareholder of the Company.

6. Restrictions on Transfer. No right or interest of Grantee in the Units may be pledged, encumbered, or hypothecated to or in favor of any party other than the Company or an affiliate, or shall be subject to any lien, obligation, or liability of Grantee to any other party other than the Company or an affiliate. The Units are not assignable or transferable by Grantee other than by will or the laws of descent and distribution; provided, however, that the Committee may (but need not) permit other transfers as permitted under the terms of the Plan.

7. Payment of Taxes. Where applicable, Grantee will pay to the Company or make other arrangements satisfactory to the Company regarding payment of, any federal, state and local taxes of any kind (including social insurance contributions, payroll taxes and other related taxes, if any) required by law to be withheld with respect to such amount. The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and the Company, and, where applicable, its subsidiaries will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to Grantee.

8. Amendment. The Committee may amend, modify or terminate this Agreement without approval of Grantee; provided, however, that such amendment, modification or termination shall not, without Grantee’s consent, reduce or diminish the value of this award determined as if it had been fully vested (i.e., as if all restrictions on the Units hereunder had expired) on the date of such amendment or termination.

9. Plan Controls. The terms contained in the Plan are incorporated into and made a part of this Agreement and this Agreement shall be governed by and construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan shall be controlling and determinative.

10. Successors. This Agreement shall be binding upon any successor of the Company, in accordance with the terms of this Agreement and the Plan.

11. Severability. If any one or more of the provisions contained in this Agreement are invalid, illegal or unenforceable, the other provisions of this Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included.

12. Notice. Notices and communications under this Agreement must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to:

Genuine Parts Company

2999 Circle 75 Parkway

Atlanta, Georgia 30339

Attn: Secretary

or any other address designated by the Company in a written notice to Grantee. Notices to Grantee will be directed to the address of Grantee then currently on file with the Company, or at any other address given by Grantee in a written notice to the Company.

*Grantee must have attained the age of 65 to qualify for retirement provision

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Thomas C. Gallagher, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Genuine Parts Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 7, 2014

/s/ Thomas C. Gallagher

Thomas C. Gallagher

Chairman and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Carol B. Yancey, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Genuine Parts Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 7, 2014

/s/ Carol B. Yancey

Carol B. Yancey

Executive Vice President and Chief Financial Officer

(Duly Authorized Officer and Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

STATEMENT OF CHIEF EXECUTIVE OFFICER OF

GENUINE PARTS COMPANY

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

§ 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Genuine Parts Company (the “Company”) on Form 10-Q for the quarter ended March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas C. Gallagher, Chairman and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Thomas C. Gallagher

Thomas C. Gallagher

Chairman and Chief Executive Officer

May 7, 2014

EX-32.2

EXHIBIT 32.2

STATEMENT OF CHIEF FINANCIAL OFFICER OF

GENUINE PARTS COMPANY

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

§ 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Genuine Parts Company (the “Company”) on Form 10-Q for the quarter ended March 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Carol B. Yancey, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Carol B. Yancey

Carol B. Yancey

Executive Vice President and Chief Financial Officer

(Duly Authorized Officer and Principal Financial and Accounting Officer)

May 7, 2014

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Share-Based Compensation

3 Months Ended

Mar. 31, 2014

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-Based Compensation

Note D – Share-Based Compensation

As more fully discussed in Note 5 of the Company’s notes to the consolidated financial statements in its 2013 Annual Report on Form 10-K, the Company maintains various long-term incentive plans, which provide for the granting of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (“RSUs”), performance awards, dividend equivalents and other share-based awards. SARs represent a right to receive upon exercise an amount, payable in shares of common stock, equal to the excess, if any, of the fair market value of the Company’s common stock on the date of exercise over the base value of the grant. The terms of such SARs require net settlement in shares of common stock and do not provide for cash settlement. RSUs represent a contingent right to receive one share of the Company’s common stock at a future date. The majority of awards previously granted vest on a pro-rata basis for periods ranging from one to five years and are expensed accordingly on a straight-line basis. The Company issues new shares upon exercise or conversion of awards under these plans. Most awards may be exercised or converted to shares not earlier than twelve months nor later than ten years from the date of grant. At March 31, 2014, total compensation cost related to nonvested awards not yet recognized was approximately $19.0 million, as compared to $26.0 million at December 31, 2013. The weighted-average period over which this compensation cost is expected to be recognized is approximately three years. The aggregate intrinsic value for SARs and RSUs outstanding at March 31, 2014 was approximately $151.4 million. At March 31, 2014, the aggregate intrinsic value for SARs and RSUs vested totaled approximately $89.3 million, and the weighted-average contractual life for outstanding and exercisable SARs and RSUs was approximately six and five years, respectively. For the three months ended March 31, 2014, $3.1 million of share-based compensation cost was recorded, as compared to $2.5 million for the same period in the prior year. On April 1, 2014, the Company granted approximately 680,000 SARs and 165,000 RSUs.

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Other Comprehensive Income

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Other Comprehensive Income

Note C – Other Comprehensive Income

The difference between comprehensive income and net income was due to foreign currency translation adjustments and pension and other post-retirement benefit adjustments, as summarized below.

	Three Months Ended March 31,
	2014			2013
	(in thousands)
Net income	$	157,484		$	144,389
Other comprehensive income:
Foreign currency translation		102			(8,220	)
Pension and other post-retirement benefit adjustments:
Recognition of prior service credit, net of tax		(487	)		(1,323	)
Recognition of actuarial loss, net of tax		4,278			13,101
Total other comprehensive income		3,893			3,558
Comprehensive income	$	161,377		$	147,947

The following tables present the changes in accumulated other comprehensive (loss) income by component for the three months ended March 31:

	2014
	Changes in Accumulated Other Comprehensive (Loss) Income by Component
	Pension and Other Post- Retirement Benefits			Foreign Currency Translation			Total
	(in thousands)
Beginning balance, January 1	$	(360,036	)	$	(37,619	)	$	(397,655	)
Other comprehensive income before reclassifications, net of tax		—			102			102
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax		3,791			—			3,791
Net current period other comprehensive income		3,791			102			3,893
Ending balance, March 31	$	(356,245	)	$	(37,517	)	$	(393,762	)

	2013
	Changes in Accumulated Other Comprehensive (Loss) Income by Component
	Pension and Other Post- Retirement Benefits			Foreign Currency Items			Total
	(in thousands)
Beginning balance, January 1	$	(632,576	)	$	131,084		$	(501,492	)
Other comprehensive loss before reclassifications, net of tax		—			(8,220	)		(8,220	)
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax		11,778			—			11,778
Net current period other comprehensive income (loss)		11,778			(8,220	)		3,558
Ending balance, March 31	$	(620,798	)	$	122,864		$	(497,934	)

The accumulated other comprehensive (loss) income components related to the pension benefits are included in the computation of net periodic benefit (income) cost in the employee benefit plans footnote.

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Condensed Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
CURRENT ASSETS:
Cash and cash equivalents	$ 103,472	$ 196,893
Trade accounts receivable, less allowance for doubtful accounts (2014 - $15,474; 2013 - $14,423)	1,828,309	1,664,819
Merchandise inventories, net - at lower of cost or market	2,974,306	2,946,021
Prepaid expenses and other current assets	440,344	413,758
TOTAL CURRENT ASSETS	5,346,431	5,221,491
Goodwill	848,682	789,971
Other intangible assets, less accumulated amortization	561,130	499,385
Deferred tax assets	92,539	97,555
Other assets	468,903	401,834
Property, plant and equipment, less allowance for depreciation (2014 - $833,310; 2013 - $807,436)	664,689	670,061
TOTAL ASSETS	7,982,374	7,680,297
CURRENT LIABILITIES:
Trade accounts payable	2,335,327	2,269,671
Current portion of debt	399,756	264,658
Dividends payable	88,421	82,746
Income taxes payable	76,682	9,237
Other current liabilities	522,552	556,732
TOTAL CURRENT LIABILITIES	3,422,738	3,183,044
Long-term debt	500,000	500,000
Pension and other post-retirement benefit liabilities	137,638	140,171
Deferred tax liabilities	87,726	83,316
Other long-term liabilities	423,063	414,998
EQUITY:
Preferred stock, par value - $1 per share Authorized - 10,000,000 shares - None issued	0	0
Common stock, par value - $1 per share Authorized - 450,000,000 shares Issued - 2014 - 153,604,136; 2013 - 153,773,098	153,604	153,773
Additional paid-in capital	17,278	14,935
Retained earnings	3,624,642	3,578,021
Accumulated other comprehensive loss	(393,762)	(397,655)
TOTAL PARENT EQUITY	3,401,762	3,349,074
Noncontrolling interests in subsidiaries	9,447	9,694
TOTAL EQUITY	3,411,209	3,358,768
TOTAL LIABILITIES AND EQUITY	$ 7,982,374	$ 7,680,297

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Basis of Presentation

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

Note A – Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. Except as disclosed herein, there has been no material change in the information disclosed in the notes to the consolidated financial statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company”) for the year ended December 31, 2013. Accordingly, the unaudited interim condensed consolidated financial statements and related disclosures herein should be read in conjunction with the Company’s 2013 Annual Report on Form 10-K.

The preparation of interim financial statements requires management to make estimates and assumptions for the amounts reported in the condensed consolidated financial statements. Specifically, the Company makes estimates and assumptions in its interim condensed consolidated financial statements for inventory adjustments, the accrual of bad debts, customer sales returns, and volume incentives earned, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation, which is performed each year-end. Reserves for bad debts are estimated and accrued based on a percentage of sales. Customer sales returns are estimated and accrued on an interim basis based upon historical sales and returns. Volume incentives are estimated based upon cumulative and projected purchasing levels. The estimates and assumptions for interim reporting may change upon final determination at year-end, and such changes may be significant.

In the opinion of management, all adjustments necessary for a fair presentation of the Company’s financial results for the interim periods have been made. These adjustments are of a normal recurring nature. The results of operations for the three month period ended March 31, 2014 are not necessarily indicative of results for the entire year. The Company has evaluated subsequent events through the date the financial statements covered by this quarterly report were issued.

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Guarantees - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Guarantor Obligations [Line Items]
Total borrowings of the independents and affiliates	$ 262.6
Minimum [Member]
Guarantor Obligations [Line Items]
Guaranteed obligations maturity	1 year
Maximum [Member]
Guarantor Obligations [Line Items]
Guaranteed obligations maturity	6 years

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Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Information

Note B – Segment Information

	Three Months Ended March 31,
	2014			2013
	(in thousands)
Net sales:
Automotive	$	1,898,515		$	1,544,537
Industrial		1,143,274			1,102,080
Office products		418,098			420,128
Electrical/electronic materials		180,331			139,185
Other		(15,321	)		(7,128	)
Total net sales	$	3,624,897		$	3,198,802
Operating profit:
Automotive	$	150,110		$	121,043
Industrial		83,050			78,895
Office products		33,946			33,192
Electrical/electronic materials		15,529			10,451
Total operating profit		282,635			243,581
Interest expense, net		(6,206	)		(3,353	)
Other intangible assets amortization		(8,876	)		(3,775	)
Other, net		(23,581	)		(14,316	)
Income before income taxes	$	243,972		$	222,137

Net sales by segment exclude the effect of certain discounts, incentives and freight billed to customers. The line item “Other” represents the net effect of the discounts, incentives and freight billed to customers, which is reported as a component of net sales in the Company’s condensed consolidated statements of income and comprehensive income.

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Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 15,474	$ 14,423
Allowance for depreciation, property, plant and equipment	$ 833,310	$ 807,436
Preferred stock, par value	$ 1	$ 1
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	450,000,000	450,000,000
Common stock, shares issued	153,604,136	153,773,098

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Other Comprehensive Income - Comprehensive Income (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Equity [Abstract]
Net income	$ 157,484	$ 144,389
Other comprehensive income:
Foreign currency translation	102	(8,220)
Pension and other post-retirement benefit adjustments:
Recognition of prior service credit, net of tax	(487)	(1,323)
Recognition of actuarial loss, net of tax	4,278	13,101
Net current period other comprehensive income (loss)	3,893	3,558
Comprehensive income	$ 161,377	$ 147,947

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Document and Entity Information	3 Months Ended
	Mar. 31, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Entity Registrant Name	GENUINE PARTS CO
Entity Central Index Key	0000040987
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	153,604,136

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Other Comprehensive Income - Changes in Accumulated Other Comprehensive (Loss) Income by Component (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (397,655)	$ (501,492)
Other comprehensive income (loss) before reclassifications, net of tax	102	(8,220)
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax	3,791	11,778
Net current period other comprehensive income (loss)	3,893	3,558
Ending balance	(393,762)	(497,934)
Pension and Other Post-Retirement Benefits [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(360,036)	(632,576)
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax	3,791	11,778
Net current period other comprehensive income (loss)	3,791	11,778
Ending balance	(356,245)	(620,798)
Foreign Currency Translation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(37,619)	131,084
Other comprehensive income (loss) before reclassifications, net of tax	102	(8,220)
Net current period other comprehensive income (loss)	102	(8,220)
Ending balance	$ (37,517)	$ 122,864

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Condensed Consolidated Statements of Income and Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Net sales	$ 3,624,897	$ 3,198,802
Cost of goods sold	2,540,267	2,277,054
Gross profit	1,084,630	921,748
Operating expenses:
Selling, administrative, and other expenses	803,802	673,612
Depreciation and amortization	36,856	25,999
Total operating expenses	840,658	699,611
Income before income taxes	243,972	222,137
Income taxes	86,488	77,748
Net income	157,484	144,389
Basic net income per common share	$ 1.02	$ 0.93
Diluted net income per common share	$ 1.02	$ 0.93
Dividends declared per common share	$ 0.5750	$ 0.5375
Weighted average common shares outstanding	153,729	154,891
Dilutive effect of stock options and non-vested restricted stock awards	1,067	1,040
Weighted average common shares outstanding - assuming dilution	154,796	155,931
Comprehensive income	$ 161,377	$ 147,947

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Fair Value of Financial Instruments

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Note G – Fair Value of Financial Instruments

The carrying amounts reflected in the condensed consolidated balance sheets for cash and cash equivalents, trade accounts receivable, trade accounts payable, and borrowings under the line of credit approximate their respective fair values based on the short-term nature of these instruments. At March 31, 2014, the carrying value and the fair value of fixed rate debt were approximately $500.0 million and $498.0 million, respectively. The fair value of fixed rate debt is designated as Level 2 in the fair value hierarchy (i.e., significant observable inputs) and is based primarily on the discounted value of future cash flows using current market interest rates offered for debt of similar credit risk and maturity. The carrying value of the fixed rate debt is included in “Long-term debt” in the accompanying condensed consolidated balance sheet.

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Guarantees

3 Months Ended

Mar. 31, 2014

Guarantees [Abstract]

Guarantees

Note F – Guarantees

The Company guarantees the borrowings of certain independently controlled automotive parts stores (“independents”) and certain other affiliates in which the Company has a noncontrolling equity ownership interest (“affiliates”). Presently, the independents are generally consolidated by unaffiliated enterprises that have a controlling financial interest through ownership of a majority voting interest in the independent. The Company has no voting interest or equity conversion rights in any of the independents. The Company does not control the independents or the affiliates, but receives a fee for the guarantee. The Company has concluded that the independents are variable interest entities, but that the Company is not the primary beneficiary. Specifically, the equity holders of the independents have the power to direct the activities that most significantly impact the entity’s economic performance including, but not limited to, decisions about hiring and terminating personnel, local marketing and promotional initiatives, pricing and selling activities, credit decisions, monitoring and maintaining appropriate inventories, and store hours. Separately, the Company concluded the affiliates are not variable interest entities. The Company’s maximum exposure to loss as a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to the Company’s guarantee. While such borrowings of the independents and affiliates are outstanding, the Company is required to maintain compliance with certain covenants, including a maximum debt to capitalization ratio and certain limitations on additional borrowings. At March 31, 2014, the Company was in compliance with all such covenants.

At March 31, 2014, the total borrowings of the independents and affiliates subject to guarantee by the Company were approximately $262.6 million. These loans generally mature over periods from one to six years. In the event that the Company is required to make payments in connection with guaranteed obligations of the independents or the affiliates, the Company would obtain and liquidate certain collateral (e.g., accounts receivable and inventory) to recover all or a portion of the amounts paid under the guarantee. When it is deemed probable that the Company will incur a loss in connection with a guarantee, a liability is recorded equal to this estimated loss. To date, the Company has had no significant losses in connection with guarantees of independents’ and affiliates’ borrowings.

The Company has accrued for guarantees related to the independents’ and affiliates’ borrowings as of March 31, 2014. These liabilities are not material to the financial position of the Company and are included in “Other long-term liabilities” in the accompanying condensed consolidated balance sheets.

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Fair Value of Financial Instruments - Additional Information (Detail) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Fair Value Disclosures [Abstract]
Carrying value of fixed rate debt	$ 500,000,000	$ 500,000,000
Fair value of fixed rate debt	$ 498,000,000

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Share-Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended			0 Months Ended		3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Apr. 02, 2014 Stock Appreciation Rights [Member] Subsequent Event [Member]	Apr. 02, 2014 Restricted Stock Units [Member] Subsequent Event [Member]	Mar. 31, 2014 Minimum [Member]	Mar. 31, 2014 Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment award granted vesting period range						1 year	5 years
Share-based payment, awards exercise						12 months	10 years
Total compensation cost related to nonvested awards, unrecognized	$ 19.0		$ 26.0
Weighted-average period to recognize compensation cost (in years)	3 years
Aggregate intrinsic value for outstanding SARs and RSUs	151.4
Aggregate intrinsic value for vested SARs and RSUs	89.3
Weighted-average remaining contractual life for outstanding SARs and RSUs, in years	6 years
Weighted-average remaining contractual life for exercisable SARs and RSUs, in years	5 years
Share-based compensation	$ 3.1	$ 2.5
Granted, Shares				680,000	165,000

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Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2014

Compensation And Retirement Disclosure [Abstract]

Components of Net Periodic Benefit (Income) Cost for the Pension Plans

Net periodic benefit (income) cost for the pension plans included the following components for the three months ended March 31:

	2014			2013
	(in thousands)
Service cost	$	1,909		$	4,976
Interest cost		25,502			22,407
Expected return on plan assets		(36,197	)		(33,518	)
Amortization of prior service credit		(464	)		(1,894	)
Amortization of actuarial loss		6,595			21,112
Net periodic benefit (income) cost	$	(2,655	)	$	13,083

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Summary of Segment Information

	Three Months Ended March 31,
	2014			2013
	(in thousands)
Net sales:
Automotive	$	1,898,515		$	1,544,537
Industrial		1,143,274			1,102,080
Office products		418,098			420,128
Electrical/electronic materials		180,331			139,185
Other		(15,321	)		(7,128	)
Total net sales	$	3,624,897		$	3,198,802
Operating profit:
Automotive	$	150,110		$	121,043
Industrial		83,050			78,895
Office products		33,946			33,192
Electrical/electronic materials		15,529			10,451
Total operating profit		282,635			243,581
Interest expense, net		(6,206	)		(3,353	)
Other intangible assets amortization		(8,876	)		(3,775	)
Other, net		(23,581	)		(14,316	)
Income before income taxes	$	243,972		$	222,137

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Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Comprehensive Income

The difference between comprehensive income and net income was due to foreign currency translation adjustments and pension and other post-retirement benefit adjustments, as summarized below.

	Three Months Ended March 31,
	2014			2013
	(in thousands)
Net income	$	157,484		$	144,389
Other comprehensive income:
Foreign currency translation		102			(8,220	)
Pension and other post-retirement benefit adjustments:
Recognition of prior service credit, net of tax		(487	)		(1,323	)
Recognition of actuarial loss, net of tax		4,278			13,101
Total other comprehensive income		3,893			3,558
Comprehensive income	$	161,377		$	147,947

Changes in Accumulated Other Comprehensive (Loss) Income by Component

The following tables present the changes in accumulated other comprehensive (loss) income by component for the three months ended March 31:

	2014
	Changes in Accumulated Other Comprehensive (Loss) Income by Component
	Pension and Other Post- Retirement Benefits			Foreign Currency Translation			Total
	(in thousands)
Beginning balance, January 1	$	(360,036	)	$	(37,619	)	$	(397,655	)
Other comprehensive income before reclassifications, net of tax		—			102			102
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax		3,791			—			3,791
Net current period other comprehensive income		3,791			102			3,893
Ending balance, March 31	$	(356,245	)	$	(37,517	)	$	(393,762	)

	2013
	Changes in Accumulated Other Comprehensive (Loss) Income by Component
	Pension and Other Post- Retirement Benefits			Foreign Currency Items			Total
	(in thousands)
Beginning balance, January 1	$	(632,576	)	$	131,084		$	(501,492	)
Other comprehensive loss before reclassifications, net of tax		—			(8,220	)		(8,220	)
Amounts reclassified from accumulated other comprehensive (loss) income, net of tax		11,778			—			11,778
Net current period other comprehensive income (loss)		11,778			(8,220	)		3,558
Ending balance, March 31	$	(620,798	)	$	122,864		$	(497,934	)

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Segment Information - Summary of Segment Information (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]
Total net sales	$ 3,624,897	$ 3,198,802
Total operating profit	282,635	243,581
Interest expense, net	(6,206)	(3,353)
Other intangible assets amortization	(8,876)	(3,775)
Other, net	(23,581)	(14,316)
Income before income taxes	243,972	222,137
Automotive [Member]
Segment Reporting Information [Line Items]
Total net sales	1,898,515	1,544,537
Total operating profit	150,110	121,043
Industrial [Member]
Segment Reporting Information [Line Items]
Total net sales	1,143,274	1,102,080
Total operating profit	83,050	78,895
Office Products [Member]
Segment Reporting Information [Line Items]
Total net sales	418,098	420,128
Total operating profit	33,946	33,192
Electrical/Electronic Materials [Member]
Segment Reporting Information [Line Items]
Total net sales	180,331	139,185
Total operating profit	15,529	10,451
Other [Member]
Segment Reporting Information [Line Items]
Total net sales	$ (15,321)	$ (7,128)

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Employee Benefit Plans - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Compensation And Retirement Disclosure [Abstract]
Contribution to the pension plan	$ 38.7

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Condensed Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
OPERATING ACTIVITIES:
Net income	$ 157,484	$ 144,389
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	36,856	25,999
Share-based compensation	3,073	2,477
Excess tax benefits from share-based compensation	(4,106)	(3,840)
Other	13	(67)
Changes in operating assets and liabilities	(133,541)	(52,580)
NET CASH PROVIDED BY OPERATING ACTIVITIES	59,779	116,378
INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(18,387)	(12,924)
Acquisitions and other investing activities	(156,853)	(6,745)
NET CASH USED IN INVESTING ACTIVITIES	(175,240)	(19,669)
FINANCING ACTIVITIES:
Proceeds from debt	740,012	439,742
Payments on debt	(610,604)	(25,000)
Share-based awards exercised, net of taxes paid	(4,736)	(4,425)
Excess tax benefits from share-based compensation	4,106	3,840
Dividends paid	(82,750)	(76,641)
Purchase of stock	(22,709)	(110)
NET CASH PROVIDED BY FINANCING ACTIVITIES	23,319	337,406
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(1,279)	4,684
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(93,421)	438,799
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	196,893	403,095
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 103,472	$ 841,894

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Employee Benefit Plans

3 Months Ended

Mar. 31, 2014

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

Note E – Employee Benefit Plans

Net periodic benefit (income) cost for the pension plans included the following components for the three months ended March 31:

	2014			2013
	(in thousands)
Service cost	$	1,909		$	4,976
Interest cost		25,502			22,407
Expected return on plan assets		(36,197	)		(33,518	)
Amortization of prior service credit		(464	)		(1,894	)
Amortization of actuarial loss		6,595			21,112
Net periodic benefit (income) cost	$	(2,655	)	$	13,083

Pension benefits also include amounts related to a supplemental retirement plan. During the three months ended March 31, 2014, the Company made a $38.7 million contribution to the pension plan.

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Employee Benefit Plans - Components of Net Periodic Benefit (Income) Cost for the Pension Plans (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Compensation And Retirement Disclosure [Abstract]
Service cost	$ 1,909	$ 4,976
Interest cost	25,502	22,407
Expected return on plan assets	(36,197)	(33,518)
Amortization of prior service credit	(464)	(1,894)
Amortization of actuarial loss	6,595	21,112
Net periodic benefit (income) cost	$ (2,655)	$ 13,083